A&P here last week disclosed a deal to sell leasehold interests in “a few” stores but did not identify the stores affected or the buyer. Sources have told SN the stores are Food Emporium locations at 2008 Broadway and 475 6th Ave. in Manhattan. A&P said it had agreed to sell those store leases to Madison Capital, an investment fund based in New York. Those stores will be closed prior to the transfer, A&P said.
Published reports this week said at least one of those stores was set to close in early May. A&P said the deal with Madison Capital — a private investment group specializing in real-estate investments — was scheduled to close in mid-May.
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Details of the pending deal were revealed in court papers filed this month by A&P in response to a suit by a labor union representing workers at Food Emporium stores. The union, United Food and Commercial Locals Local 342, sued A&P earlier this year, saying A&P had violated certain terms of its contract with the union regarding the sale process. That case is still pending, according to court papers.
A&P in the affidavit also revealed that although the union had introduced a potential buyer for the entire 16-store Food Emporium chain, A&P’s bankers determined the group “did not mount a serious attempt to purchase the stores.” A&P said it offered a buyout worth $ 2 million to the workers who would be affected by the store closures.